48. Which of the following is true about the crowding-out effect?

A. Economic growth is stimulated in the long run. B. Government demand for funds decreases. C. Private demand for funds decreases. D. Private investment increases. E. Real interest rates decrease.

49. What will be the impact of costs associated with environmental pollution while computing the GDP of a country?

A. Decreases nominal GDP and real GDP, as well

B. Decreases real GDP but increases nominal GDP C. GDP stays unaffected D. Increases nominal GDP and real GDP, as well E. Increases real GDP but decreases nominal GDP

50. Use the graph to answer the question that follows.